German discount grocer ALDI announced plans to enter Colorado with more than 50 stores in the Denver and Colorado Springs markets, a move that retail experts say could shake up a market long dominated by Kroger’s King Soopers.
“ALDI is known as a disruptor in the grocery store space because they have low profit margins. They have smaller stores and lower selection,” Jack Buffington, program director of supply chain management at the University of Denver. “In a time where there’s issues with food costs, ALDI will definitely have an impact on the Denver and Colorado market.”
Buffington said ALDI’s smaller footprint of about a fifth the size of a traditional grocery store, and their emphasis on private-label items, allows the chain to offer lower prices which could pressure larger supermarkets to respond. He added ALDI often opens in dense, urban areas and underused retail spaces, which could help address local food access gaps.
The Denver Department of Public Health and Environment is hopeful that a new grocery chain entering the market will remove some of the food deserts in town, saying in a statement:…